Service tax liability

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An EOU undertake job work on behalf of a DTA unit and exports the final product from the EOU on behalf of the DTA unit. The job work relate to only powdering of red chillies and the chilly powder is exported from the EOU, for which the EOU get job work charges. The doubt is whether this job work will attract service tax. Also please clarify whether this process will amount to manufacture.

Replies (1)

Sir

Process of converting chillies into powrder form amounts to manufacture. Hence, service tax shall be charged on such job work.

Please let me know if chillies are excisable products or not for a confirmed reply.


CCI Pro

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